Revenue growth has reaccelerated to 12.5% year-over-year in 2026Q3, but this has been accompanied by a severe compression in gross margin from 23.6% to 18.8% over the same period, indicating the growth is coming from lower-margin product categories.
HP Inc. (HPQ) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 |
|---|
| Sales/Revenue | 59.16B | 55.3B | 53.56B | 53.72B | 62.91B | 63.46B | 56.64B | 58.76B | 58.47B | 52.06B | 48.24B | 51.46B | 56.65B | 112.3B | 120.36B | 127.25B | 126.03B | 114.55B | 118.36B | 104.29B | 91.66B | 86.7B | 79.91B | 73.06B | 56.59B | 45.23B | 48.87B | 42.37B | 39.42B | 35.47B | 38.42B |
| Revenue Growth % | 8.14% | 3.24% | -0.3% | -14.61% | -0.87% | 12.04% | -3.6% | 0.49% | 12.33% | 7.91% | -6.27% | -9.16% | -49.55% | -6.7% | -5.41% | 0.96% | 10.02% | -3.22% | 13.5% | 13.78% | 5.72% | 8.5% | 9.37% | 29.11% | 25.12% | -7.46% | 15.34% | 7.49% | 11.15% | -7.69% | 21.89% |
| Cost of Goods Sold | 47.4B | 44.25B | 41.74B | 42.21B | 50.65B | 50.05B | 46.22B | 47.59B | 47.8B | 42.48B | 39.24B | 41.52B | 45.43B | 86.38B | 92.39B | 97.42B | 95.85B | 87.52B | 89.7B | 78.36B | 69.43B | 66.44B | 60.81B | 53.86B | 41.58B | 33.26B | 34.81B | 29.72B | 27.79B | 24.52B | 25.5B |
| COGS % of Revenue | - | 80.02% | 77.93% | 78.58% | 80.51% | 78.87% | 81.6% | 80.99% | 81.75% | 81.6% | 81.35% | 80.69% | 80.19% | 76.92% | 76.76% | 76.56% | 76.05% | 76.41% | 75.78% | 75.14% | 75.75% | 76.64% | 76.1% | 73.72% | 73.48% | 73.54% | 71.24% | 70.14% | 70.5% | 69.15% | 66.37% |
| Gross Profit | 11.7B | 11.05B | 11.82B | 11.51B | 12.26B | 13.41B | 10.42B | 11.17B | 10.67B | 9.58B | 9B | 9.94B | 11.22B | 25.92B | 27.97B | 29.83B | 30.18B | 27.03B | 28.66B | 25.93B | 22.23B | 20.26B | 19.09B | 19.2B | 15.01B | 11.97B | 14.06B | 12.65B | 11.63B | 10.94B | 12.92B |
| Gross Margin % | 19.78% | 19.98% | 22.07% | 21.42% | 19.49% | 21.13% | 18.4% | 19.01% | 18.25% | 18.4% | 18.65% | 19.31% | 19.81% | 23.08% | 23.24% | 23.44% | 23.95% | 23.59% | 24.22% | 24.86% | 24.25% | 23.36% | 23.9% | 26.28% | 26.52% | 26.46% | 28.76% | 29.86% | 29.5% | 30.85% | 33.63% |
| Gross Profit Growth % | - | -6.52% | 2.69% | -6.16% | -8.53% | 28.65% | -6.71% | 4.7% | 11.39% | 6.45% | -9.47% | -11.42% | -56.71% | -7.34% | -6.22% | -1.17% | 11.67% | -5.71% | 10.55% | 16.64% | 9.75% | 6.09% | -0.57% | 27.94% | 25.42% | -14.87% | 11.12% | 8.78% | 6.29% | -15.32% | 12.31% |
| Operating Expenses | 8.36B | 7.42B | 8B | 8.05B | 7.7B | 8.05B | 6.98B | 7.29B | 6.84B | 6.21B | 5.45B | 6.02B | 6.96B | 18.79B | 39.03B | 20.15B | 18.7B | 16.89B | 18.19B | 17.21B | 15.67B | 16.78B | 14.87B | 16.31B | 16.02B | 10.53B | 10.03B | 8.96B | 8.23B | 7.54B | 9.2B |
| OpEx % of Revenue | - | 13.42% | 14.94% | 14.99% | 12.25% | 12.68% | 12.32% | 12.41% | 11.69% | 11.93% | 11.3% | 11.7% | 12.29% | 16.73% | 32.43% | 15.84% | 14.84% | 14.75% | 15.37% | 16.5% | 17.1% | 19.36% | 18.61% | 22.32% | 28.31% | 23.28% | 20.53% | 21.15% | 20.88% | 21.25% | 23.93% |
| Selling, General & Admin | 5.99B | 5.82B | 5.66B | 5.36B | 5.26B | 5.73B | 4.9B | 5.37B | 5.1B | 4.53B | 3.83B | 4.72B | 5.36B | 13.27B | 13.5B | 13.58B | 12.82B | 11.61B | 13.33B | 12.23B | 11.27B | 11.18B | 10.5B | 11.01B | 9.03B | 7.19B | 7.22B | 6.52B | 5.85B | 5.34B | 6.48B |
| SG&A % of Revenue | - | 10.53% | 10.56% | 9.97% | 8.37% | 9.02% | 8.65% | 9.14% | 8.72% | 8.71% | 7.95% | 9.17% | 9.46% | 11.81% | 11.22% | 10.67% | 10.17% | 10.14% | 11.26% | 11.72% | 12.29% | 12.9% | 13.14% | 15.07% | 15.96% | 15.89% | 14.77% | 15.39% | 14.84% | 15.07% | 16.86% |
| Research & Development | 1.61B | 1.6B | 1.64B | 1.58B | 1.65B | 1.85B | 1.48B | 1.5B | 1.4B | 1.19B | 1.21B | 1.19B | 1.3B | 3.13B | 3.4B | 3.25B | 2.96B | 2.82B | 3.54B | 3.61B | 3.59B | 3.49B | 3.56B | 3.65B | 3.31B | 2.72B | 2.63B | 2.44B | 2.38B | 2.19B | 2.72B |
| R&D % of Revenue | - | 2.9% | 3.06% | 2.94% | 2.63% | 2.91% | 2.61% | 2.55% | 2.4% | 2.29% | 2.51% | 2.31% | 2.29% | 2.79% | 2.82% | 2.56% | 2.35% | 2.46% | 2.99% | 3.46% | 3.92% | 4.03% | 4.46% | 5% | 5.85% | 6.02% | 5.38% | 5.76% | 6.04% | 6.18% | 7.07% |
| Other Operating Expenses | 3M | 0 | 702M | 1.12B | 787M | 473M | 601M | 426M | 335M | 488M | 407M | 109M | 305M | 2.38B | 22.13B | 3.32B | 2.92B | 2.46B | 1.32B | 1.37B | 814M | 2.11B | 808M | 1.64B | 3.68B | 618M | 188M | 0 | 0 | 0 | 0 |
| Operating Income | 3.34B | 3.62B | 3.82B | 3.46B | 4.56B | 5.36B | 3.44B | 3.88B | 3.83B | 3.37B | 3.55B | 3.92B | 4.26B | 7.13B | -11.06B | 9.68B | 11.48B | 10.14B | 10.47B | 8.72B | 6.56B | 3.47B | 4.23B | 2.9B | -1.01B | 1.44B | 4.03B | 3.69B | 3.4B | 3.4B | 3.73B |
| Operating Margin % | 5.64% | 6.55% | 7.13% | 6.43% | 7.25% | 8.44% | 6.08% | 6.6% | 6.55% | 6.47% | 7.36% | 7.62% | 7.51% | 6.35% | -9.19% | 7.61% | 9.11% | 8.85% | 8.85% | 8.36% | 7.16% | 4.01% | 5.29% | 3.96% | -1.79% | 3.18% | 8.24% | 8.7% | 8.62% | 9.6% | 9.7% |
| Operating Income Growth % | - | -5.08% | 10.47% | -24.19% | -14.93% | 55.69% | -11.22% | 1.2% | 13.75% | -5.1% | -9.46% | -7.89% | -40.32% | 164.49% | -214.26% | -15.7% | 13.25% | -3.22% | 20.12% | 32.91% | 88.89% | -17.84% | 45.96% | 386.17% | -170.33% | -64.25% | 9.14% | 8.5% | -0.18% | -8.62% | 4.43% |
| EBITDA | 3.9B | 4.54B | 4.65B | 4.31B | 5.34B | 6.14B | 4.23B | 4.62B | 4.36B | 3.72B | 3.88B | 7.98B | 8.59B | 11.74B | -5.96B | 14.66B | 16.3B | 14.92B | 13.83B | 11.42B | 8.91B | 5.82B | 6.62B | 5.42B | 1.11B | 2.81B | 5.27B | 5B | 4.78B | 4.55B | 5.02B |
| EBITDA Margin % | 6.59% | 8.21% | 8.68% | 8.02% | 8.49% | 9.68% | 7.47% | 7.86% | 7.45% | 7.15% | 8.05% | 15.51% | 15.16% | 10.46% | -4.95% | 11.52% | 12.93% | 13.02% | 11.68% | 10.95% | 9.72% | 6.71% | 8.29% | 7.42% | 1.96% | 6.21% | 10.78% | 11.81% | 12.12% | 12.83% | 13.07% |
| EBITDA Growth % | -5.43% | -2.32% | 7.94% | -19.35% | -13.1% | 45.21% | -8.44% | 6.01% | 17.11% | -4.1% | -51.37% | -7.09% | -26.84% | 296.95% | -140.67% | -10.05% | 9.27% | 7.86% | 21.05% | 28.17% | 53.22% | -12.16% | 22.11% | 389.88% | -60.58% | -46.68% | 5.24% | 4.77% | 4.99% | -9.44% | 6.71% |
| D&A (Non-Cash Add-back) | 541M | 916M | 830M | 850M | 780M | 785M | 789M | 744M | 528M | 354M | 332M | 4.06B | 4.33B | 4.61B | 5.09B | 4.98B | 4.82B | 4.78B | 3.36B | 2.71B | 2.35B | 2.34B | 2.4B | 2.53B | 2.12B | 1.37B | 1.24B | 1.32B | 1.38B | 1.14B | 1.3B |
| EBIT | 3.22B | 3.17B | 3.89B | 3.62B | 4.68B | 7.82B | 3.45B | 2.77B | 3.33B | 3.58B | 4.03B | 3.7B | 4.43B | 8.14B | 9.29B | 11.39B | 12.92B | 10.14B | 10.83B | 9.3B | 6.77B | 5.16B | 4.43B | 3.98B | 2.26B | 2.07B | 4.13B | 3.69B | 3.4B | 3.4B | 3.73B |
| Net Interest Income | -444M | -506M | -607M | -684M | -359M | -254M | -239M | -242M | -312M | -309M | -273M | -167M | -393M | -621M | -876M | -695M | -505M | -721M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | -21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 423M | 506M | 607M | 684M | 359M | 254M | 239M | 242M | 312M | 309M | 273M | 167M | 393M | 621M | 876M | 695M | 505M | 721M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -543M | -956M | -539M | -519M | -235M | 2.21B | -231M | -1.35B | -818M | -92M | 212M | -388M | -393M | -621M | -876M | -695M | -505M | -721M | 0 | 458M | 631M | 70M | -31M | -8M | -40M | -737M | 600M | 506M | 295M | 163M | -32M |
| Pretax Income | 2.8B | 2.67B | 3.28B | 2.94B | 4.32B | 7.57B | 3.21B | 2.52B | 3.01B | 3.28B | 3.76B | 3.53B | 3.86B | 6.51B | -11.93B | 8.98B | 10.97B | 9.41B | 10.47B | 9.18B | 7.19B | 3.54B | 4.2B | 2.89B | -1.05B | 702M | 4.63B | 4.19B | 3.69B | 3.57B | 3.69B |
| Pretax Margin % | 4.73% | 4.83% | 6.12% | 5.47% | 6.87% | 11.93% | 5.67% | 4.29% | 5.15% | 6.29% | 7.8% | 6.86% | 6.82% | 5.8% | -9.91% | 7.06% | 8.71% | 8.22% | 8.85% | 8.8% | 7.85% | 4.09% | 5.25% | 3.95% | -1.86% | 1.55% | 9.46% | 9.9% | 9.37% | 10.06% | 9.61% |
| Income Tax | 345M | 139M | 504M | -326M | 1.19B | 1.03B | 396M | -629M | -2.31B | 750M | 1.09B | -186M | 939M | 1.4B | 717M | 1.91B | 2.21B | 1.75B | 2.14B | 1.91B | 993M | 1.15B | 699M | 349M | -129M | 78M | 1.06B | 1.09B | 1.02B | 1.05B | 1.11B |
| Effective Tax Rate % | 12.34% | 5.21% | 15.37% | -11.1% | 27.57% | 13.57% | 12.33% | -24.93% | -76.8% | 22.89% | 29.11% | -5.27% | 24.31% | 21.46% | -6.01% | 21.24% | 20.17% | 18.64% | 20.47% | 20.85% | 13.81% | 32.32% | 16.66% | 12.08% | 12.26% | 11.11% | 23.01% | 25.99% | 27.5% | 29.51% | 29.99% |
| Net Income | 2.45B | 2.53B | 2.77B | 3.26B | 3.13B | 6.54B | 2.81B | 3.15B | 5.33B | 2.53B | 2.5B | 4.55B | 5.01B | 5.11B | -12.65B | 7.07B | 8.76B | 7.66B | 8.33B | 7.26B | 6.2B | 2.4B | 3.5B | 2.54B | -923M | 624M | 3.7B | 3.49B | 2.94B | 3.12B | 2.59B |
| Net Margin % | 4.14% | 4.57% | 5.18% | 6.07% | 4.98% | 10.31% | 4.97% | 5.36% | 9.11% | 4.85% | 5.17% | 8.85% | 8.85% | 4.55% | -10.51% | 5.56% | 6.95% | 6.69% | 7.04% | 6.97% | 6.76% | 2.77% | 4.38% | 3.48% | -1.63% | 1.38% | 7.56% | 8.24% | 7.47% | 8.79% | 6.73% |
| Net Income Growth % | -7.16% | -8.86% | -14.96% | 4.18% | -52.12% | 132.36% | -10.69% | -40.83% | 110.89% | 1.2% | -45.19% | -9.16% | -1.96% | 140.42% | -278.82% | -19.26% | 14.37% | -8.03% | 14.66% | 17.2% | 158.47% | -31.43% | 37.73% | 375.08% | -247.92% | -83.12% | 5.9% | 18.54% | -5.58% | 20.61% | 6.29% |
| Net Income (Continuing) | 2.45B | 2.53B | 2.77B | 3.26B | 3.13B | 6.54B | 2.81B | 3.15B | 5.33B | 2.53B | 2.67B | 3.72B | 2.92B | 5.11B | -12.65B | 7.07B | 8.76B | 7.66B | 8.33B | 7.26B | 6.2B | 2.4B | 3.5B | 2.54B | -923M | 624M | 3.56B | 3.1B | 2.68B | 2.52B | 2.59B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 836M | 2.09B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 383M | 396M | 387M | 397M | 379M | 332M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.64 | 2.65 | 2.81 | 3.26 | 2.98 | 5.36 | 2.00 | 2.07 | 3.26 | 1.48 | 1.43 | 2.48 | 2.62 | 2.62 | -6.41 | 3.32 | 3.69 | 3.14 | 3.25 | 2.68 | 2.18 | 0.82 | 1.15 | 0.83 | -0.37 | 0.32 | 1.80 | 1.67 | 1.39 | 1.48 | 1.23 |
| EPS Growth % | -4.03% | -5.69% | -13.8% | 9.4% | -44.4% | 168% | -3.38% | -36.5% | 120.27% | 3.5% | -42.34% | -5.34% | 0% | 140.87% | -293.07% | -10.03% | 17.52% | -3.38% | 21.27% | 22.94% | 165.85% | -28.7% | 38.55% | 324.32% | -215.63% | -82.22% | 7.78% | 20.14% | -6.08% | 20.33% | 6.03% |
| EPS (Basic) | - | 2.67 | 2.83 | 3.29 | 3.02 | 5.41 | 2.01 | 2.08 | 3.30 | 1.50 | 1.44 | 2.51 | 2.66 | 2.64 | -6.41 | 3.38 | 3.78 | 3.21 | 3.35 | 2.76 | 2.23 | 0.83 | 1.16 | 0.83 | -0.37 | 0.32 | 1.87 | 1.73 | 1.43 | 1.53 | 1.27 |
| Diluted Shares Outstanding | 927M | 953M | 989M | 1B | 1.05B | 1.22B | 1.42B | 1.52B | 1.63B | 1.7B | 1.74B | 1.84B | 1.91B | 1.95B | 1.97B | 2.13B | 2.37B | 2.44B | 2.57B | 2.72B | 2.85B | 2.91B | 3.06B | 3.06B | 2.5B | 1.97B | 2.08B | 2.1B | 2.14B | 2.11B | 2.1B |
| Basic Shares Outstanding | 919M | 946M | 979M | 992M | 1.04B | 1.21B | 1.41B | 1.51B | 1.61B | 1.69B | 1.73B | 1.81B | 1.88B | 1.93B | 1.97B | 2.09B | 2.32B | 2.39B | 2.48B | 2.63B | 2.78B | 2.88B | 3.02B | 3.05B | 2.5B | 1.94B | 1.98B | 2.02B | 2.07B | 2.05B | 2.1B |
| Dividend Payout Ratio | - | 43.02% | 38.74% | 31.78% | 33.11% | 14.34% | 35.42% | 30.77% | 16.88% | 35.39% | 34.38% | 27.45% | 23.62% | 21.61% | - | 11.93% | 8.8% | 10% | 9.56% | 11.65% | 14.42% | 38.62% | 27.8% | 38.48% | - | 99.52% | 17.26% | 18.62% | 21.22% | 17.06% | 17.4% |
Quick answers to the most common questions about buying HPQ stock.
For fiscal year 2025, HP Inc. (HPQ) reported total revenue of $55.30B. This represents a 43.9% increase compared to $38.42B in 1996.
HP Inc. (HPQ) is profitable, generating $2.53B in net income for the fiscal year ending 2025 with a net profit margin of 4.6%.
HP Inc. (HPQ) reported an operating income of $3.62B, resulting in an operating profit margin of 6.6%. This margin reflects the operational efficiency of the business before interest and taxes.
HP Inc. (HPQ) generated $11.05B in gross profit for the year, representing a gross profit margin of 20.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression from hardware mix
Metrics are mathematically derived from official filings.
Revenue Growth Reaccelerates on Cyclical Tailwinds
HPQ's revenue growth has reaccelerated to 12.5% year-over-year in 2026Q3, a significant improvement from the low-single-digit growth seen throughout 2024 and early 2025, suggesting a potential cyclical upturn in PC demand.
The acceleration from 2.4% growth in 2024Q3 to 12.5% in 2026Q3 indicates a meaningful shift in the demand environment, likely driven by a combination of corporate refresh cycles and consumer adoption of new hardware. However, this growth appears to be volume-driven rather than pricing-driven, as evidenced by the concurrent decline in gross margins, which suggests the company is not yet capturing premium pricing for its products.
Gross Margin Erosion Amidst Revenue Growth
Despite accelerating revenue, HPQ's gross margin has compressed from 23.6% in 2024Q2 to 18.8% in 2026Q3, a 480 basis point decline that suggests the current growth is coming from lower-margin product categories or increased promotional activity.
The margin trajectory is concerning because it indicates the revenue acceleration is not translating into improved profitability. This pattern is consistent with a hardware-centric growth cycle where component costs may be rising faster than the company can pass them through to customers, or where the product mix is shifting toward lower-margin Personal Systems units at the expense of higher-margin Printing supplies.
Operating Leverage Deteriorates with Margin Pressure
Operating income as a percentage of gross profit has declined from 33.0% in 2024Q2 to 30.8% in 2026Q3, indicating that SG&A and R&D expenses are consuming a larger share of gross profit despite the company's scale.
The operating margin compression from 7.4% to 5.7% over this period suggests that HPQ is experiencing negative operating leverage, where incremental revenue is not generating proportional operating income growth. This implies that cost discipline may be weakening or that the company is investing in growth initiatives that have not yet yielded returns, warranting investigation into the efficiency of SG&A spending.
SG&A Discipline Under Pressure from Growth Investments
SG&A expenses have remained relatively stable at $1.4-1.5B per quarter despite revenue growth, but as a percentage of revenue, they have increased from 10.6% in 2024Q2 to 9.6% in 2026Q3, suggesting some operational efficiency gains.
The stability of absolute SG&A spending during a period of accelerating revenue indicates management is maintaining cost discipline. However, the slight improvement in SG&A as a percentage of revenue is being offset by gross margin compression, resulting in overall operating margin decline. This suggests that while overhead is being controlled, the primary cost pressure is coming from the cost of goods sold line, likely related to component procurement.
Growth-Profitability Disconnect Raises Sustainability Questions
The most significant analytical challenge is that HPQ's revenue acceleration is occurring alongside margin compression, creating a scenario where top-line growth may be masking underlying profitability deterioration that could become unsustainable.
Short-sellers would focus on the fact that 12.5% revenue growth is generating only 5.7% operating margins, compared to 7.0% operating margins on just 2.4% growth a year ago. This suggests the company may be chasing volume at the expense of profitability, potentially through aggressive pricing or channel incentives that could erode the value of its installed base. The declining EPS growth of -11.2% in 2026Q3 despite strong revenue growth further validates this concern about earnings quality.